The Union Finance Minister, Shri Arun Jaitely presenting the Union Budget 2015-16, said that a large proportion of India’s population is without insurance of any kind – health, accidental or life worryingly, as our young population ages, it is also going to be pension-less. Encouraged by the success of the Pradhan Mantri Jan Dhan Yojana, the Finance Minister proposed to work towards creating a universal social security system for all Indians, specially the poor and the under-privileged.

PMJJBU is a Life Insurance coverage plan. This plan covers both natural and accidental death risk. The maximum sum assured offered under this Govt Scheme is Rs 2 Lakhs. The premium will be Rs. 330 per year, or less than one rupee per day, for the age group 18-50. The scheme will be offered by Life Insurance Corporation (LIC of India). Government is also encouraging the other life insurance companies to offer this scheme. But, Private Life Insurance companies have to tie up with banks like State Bank of India (SBI) etc., to offer this scheme.

In this post, let us go through the details / highlights of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY Scheme).

Features of Govt’s Pradhan Mantri Jeevan Jyoti Bima Yojana :

Who is eligible to take PMJJBY? This life insurance plan is available to people (all citizens) in the age group of 18 to 50 years and having a bank account. People who join the scheme before completing 50 years can, however, continue to have the risk of life cover up to the age of 55 years subject to payment of premium.

When will this Scheme start / open? Pradhan Mantri Jeevan Jyoti Bima Yojana Scheme is now open for subscription for the insurance period (1st June 2015 to 31st May 2016). The last date to apply to this scheme for this insurance period is 31st May 2015 (Govt has extended this deadline till 31st August 2015).

What is the Premium amount? You have to pay Rs.330 per year. It will be auto-debited in one installment.

What is the Premium Payment Mode? The payment of premium will be directly auto-debited by the bank from the subscribers (policyholder’s) account.

What is the total Risk Coverage offered? Rs 2 Lakh will be paid, in case of death for any reason (natural or accidental death).

Terms of Risk Coverage: A person has to opt for the scheme every year (1st June to 31st May). He can also prefer to give a long-term option of continuing, in which case his account will be auto-debited every year by the bank.

Is Nomination facility available? Yes, nomination facility available. In-case of unfortunate event of death of the policyholder, the nominee will get the death benefit.

What are required documents? As per government, a copy of your Aadhar card alone is enough to subscribe to this scheme.

Who will implement this Scheme? Jeevan Jyoti Bima scheme will be offered by Life Insurance Corporation and all other life insurers who are willing to join the scheme and tie-up with banks for this purpose.

Will Government contribute to this scheme? Various other Ministries can co-contribute premium for various categories of their beneficiaries out of their budget or out of Public Welfare Fund created in this budget out of unclaimed money. This will be decided separately during the year.

An individual is eligible to join this scheme through one savings bank account only.

How to Subscribe to Pradhan Mantri Jeevan Jyoti Bima Yojana?

To avail this scheme’s benefit, you need to have a Savings Bank Account. A simple application form for PMJJBY has to be completed and submit it at LIC of India branches or participating Banks branches. Aadhar card details are considered as the primary KYC document. You have to subscribe to this scheme every year in the month of June. You can also prefer to give a long-term option of continuing with the scheme, in which case your account will be auto-debited (towards premium amount) every year by your bank.

You may exit the scheme at any point and may re-join the scheme in future years by paying the annual premium and submitting a self declaration of good health.

Pradhan Mantri Jeevan Jyoti Bima Yojana – Income Tax Benefits

The premium paid towards this scheme is eligible for tax deduction under section 80C.

My Opinion:

Though the premium amount is same for all the individuals who are in the age group of 18-50 years, I believe that this is very cheap. You can surely consider subscribing to this scheme. The sum assured of Rs 2 Lakh may not be adequate but if you look at from the cost and benefit point of view, it is a good scheme. (Remember, you still need to have a separate Term insurance plan with sufficient risk cover)

You can encourage your house-maid (or) car driver…to subscribe to this scheme. Educate them about this scheme and if possible help them in opening a Bank account (under Jan Dhan Yojana).

Latest News on PMJJBY : Life Insurance Corporation of India (LIC) and Dena Bank have signed a Memorandum of Understanding (on 6th April, 2015) to implement the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) for savings bank account holders of the bank. Dena Bank has 12 million savings bank account holders and they would be eligible to enroll under this policy. LIC is looking to tie-up with other banks as well for implementing this scheme. They have already tied-up with Corporation Bank.

Latest updates :A new Toll free number has been launched, to know more details about this scheme, call 1800 180 1111. Visit Govt’s wesbsite @ www.jansuraksha.gov.in

ICICI Bank customers can enrol for this scheme by sending an SMS. To enroll – SMS PMJJY <nominee name> Y to 5676766

Sreekanth Reddy

Sreekanth is the Man behind ReLakhs.com. He is an Independent Certified Financial Planner (CFP), engaged in blogging, financial counseling & property consultancy for the last 6 years through his firm ReLakhs Financial Services . He is not associated with any Financial product / service provider.
The main aim of his blog is to "help investors take informed financial decisions."

I have linked both schemes to Andhra Bank. Now, I am planning to close Andhra Bank Account. Can I re-apply in another Bank immediately or do I need to wait till May or June (As per schedule of schemes).? Any information on this.?

Dear Sir i applied for Pradhana Mantri Jeevan Jyoti Bima Yojane (330) & APY. I got both aknowledgement slip but i’m not getting the original LIC bond of both. I consult the bank they told collect through online only. I tried to apply i can’t so pls suggest me how can i get the oringinal bond of both i..e..PMJJBY & APY.

I have paid first premium of PMJJY through my salary account. Now my salary account shifted to another bank. After some time my previous salary A/c will be closed. So i want to know how can i continue the scheme with my current A/c.

I have paid the premium through Kotak Mahindra band. Balance has been deducted. However, I did not receive any confirmation email. Even, I do not know the Policy no. How do I know these information. Please assist.

Is it possible to contribute for people who are dependant on us like domestic maids/ drivers etc. who do not have any other social security…Currently the form looks like only those who have bank account can contribute from their account… it may help if employers can also debit premium from their bank account but payout can happen only to beneficiary bank account

Dear sir,
I have taken PMJJBY and my premium has been deducted from SBI as I have account there. But now I want to cancel this insurance so that no further premium be deducted from my account. Please let me me know what shall do to deactivate the above.

Sir, I am currently aged 30. Suppose i keep paying the premium till attaining 55 years of age and god forbid nothing happens to me. Then after attaining the age what will happen to the premium i paid for 25 years. will it be given back?

if i open this policy on 31 st march 2015 330/- amount dr from my saving a/c but some problem i close my this saving a/c, policy is close after close my saving a/c ya i can trnf my policy to other bank or open new policy in other bank

Dear sir
I applied PMJJY scheme by sending massage & on 30th may my account gets debited by rs 330.
When I visited icici bank they told me to wait atleast 15 days & the policy document will get delivered to your home .
Almost 14days gone but I didnt get any proof or any legel documents of PMJJY from my icici saving bank account.
Please help n let me know what should I do now …

Dear Sohan,
Yes, the premium amounts will remain the same.
Under PMJJBY – you can pay the premiums till 55 years. Risk cover is available till 55 years.
Under PMSBY – you can pay the premiums till 70 years.

If we paid this amount yearly then in first five year …..I give to the scheme in first five year 2350 with interest …. at last we paid ( 55-20) yrs=35yrs I paid this amount ……like 2lack …..what is my profit……

Dear Arun,
As per the Scheme’s rules, you need to submit “satisfactory statement of good health”. You may have to mention about your recent medical treatment details, then the concerned insurance company will take the final decision accordingly.

Dear Habeeb,
This is a pure term insurance policy, you do not get any returns from it.
But, that is what is expected from an insurance policy. Do not mix insurance with investment.
Read my article – “Is term insurance a waste of your money?“